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Question
Under which of the following circumstances is vertical integration hazardous?a) When a company has to purchase high-cost inputs from company-owned suppliers, even though low-cost external sources exist
b) When vertical integration involves moving downstream into retailing
c) When the value added by successive stages of production is declining
d) When the industries involved are undergoing rapid expansion
e) When the company's competitors are also following a strategy of vertical integration
Answer
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